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Strategies & Market Trends : Meditrust NYSE: MT
MT 37.43+1.5%Nov 5 3:59 PM EST

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To: WILLIAM C KLEMA who wrote (133)11/8/1999 11:23:00 PM
From: Mr. Sunshine  Read Replies (2) of 233
 
The reason a 50% is repeatedly mentioned as a possible dividend cut is because MT could cut the dividend up to that much and still retain their status as a REIT.

REITS must distribute as dividends a minimum of 95% of their net earnings (Not FFO!!!) to retain the tax benefits of being a REIT.

I believe this was mentioned in the last quarterly report. They did not say that they would cut dividends by 50%, just that they could and still retain the REIT status.

Great Investing to All,

Steve
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